5 Questions Expecting Moms Have About Life Insurance
Are you considering life insurance? If this is your first time looking for coverage, you most likely have questions. Read this blog post from Life Happens for five questions expecting mothers typically ask when looking at life insurance.
If you are expecting a child and are considering life insurance, the first thing I have to say is—smart move! But if this is your first time looking for coverage, you may have questions. Here are some typical ones I’ve heard over the years:
1. What type of life insurance coverage is best for new parents—term or permanent?
Before figuring out what kind of coverage you need, you first have to understand how much death benefit you need to protect your family. You can do an easy calculation online to get a working idea of how much you may need with this Life Happens Life Insurance Needs Calculator.
Then you can move on to what kind of coverage—term or permanent—meets your needs. An advantage of term life insurance is that it costs less than permanent, at least initially. This makes it affordable for young families that may not have a lot of disposable income, but have a large need for coverage. Permanent insurance provides both lifelong coverage and a cash accumulation feature, which can be a valuable source of money that you can tap in the future.
Often, the best solution can be a combination of term and permanent life insurance. The term policy can give you extra coverage during the years when the children are at home, with the permanent policy offering lifelong coverage.
2. Should you consider different types of coverage if you are working mom versus a stay-at-home mom?
Both working and stay-at-home moms need protection because what they do for their families is so valuable. While a stay-at-home mom isn’t compensated for her work, if something were to happen to her, it would be expensive to replace all those things she does—from childcare to home care to ensuring the family gets where they need to go when they have to be there.
The difference between the two is that a working mother also contributes an income, which may be critical to the family financially. That means she needs to think about replacing that income when considering how much life insurance coverage she may need.
3. The company where I work offers life insurance, is that enough?
Group insurance is a great benefit to have, but it’s limited in a number of ways. First, the coverage is often a lump sum, such as $50,000, or it may be one to two times your salary. That may sound like a lot of money, but my question to you is: Honestly, how long would that money last? And what would happen to your family financially after that was gone?
Second, when you leave that job, you generally lose that coverage. If you don’t have an individual policy that you own, you’ll be leaving your family at risk. Think of how many times people change jobs, and you’ll quickly realize that group coverage, which is limited in scope and amount, is not a proper life insurance plan.
4. Are there any restrictions I have to consider now that I’m pregnant?
If it’s early in your pregnancy, and there are no medical complications, you should be able to get life insurance. If you’re farther along and there are medical issues, it may difficult to obtain. The life insurance company may want to wait until after your child is born. That’s why I advise those that are planning to have children to get the coverage as soon as possible.
5. What can I expect to pay for life insurance?
How much you pay for life insurance is based on a number of things but most importantly age and health. So, it depends on how old and how healthy you are! But here’s an example: A healthy 30-year-old woman could get $250,000 in life insurance coverage (for a 20-year level term policy for a nonsmoker) for about $13 a month. That’s certainly a lot of peace of mind for $13.
And don’t forget about your spouse or partner. The two of you could get $500,000 of combined coverage (using the example of two 30-year-olds that each get a $250,000 20-year level term policy) for right around $26 a month.
And my last piece of advice: talking with a life insurance agent at this stage can be very valuable. They can do a needs assessment and come up with the right type and amount of life insurance that works for your family budget. And what many people don’t realize is that an agent will sit down and offer this advice free of charge, with no strings attached. If you’d like help finding a life insurance professional, you can start here.
SOURCE: Feldman, M. (23 August 2019) "5 Questions Expecting Moms Have About Life Insurance" (Web Blog Post). Retrieved from https://lifehappens.org/blog/5-questions-expecting-moms-have-about-life-insurance/
A 401(k) plan administrators’ guide to the recent IRS revenue ruling
The IRS recently released a new revenue ruling that provides 401(k) plan administrators with helpful guidance on reporting and withholding from 401(k) plan distributions. Read the blog post below to learn more about this new ruling.
The IRS recently issued revenue ruling 2019-19. The revenue ruling provides 401(k) plan administrators with helpful guidance on how to report and withhold from 401(k) plan distributions when a plan participant actually receives the distribution but for some reason, does not cash the check.
Unfortunately, this new guidance does not provide answers to the complex issues that 401(k) plan administrators face when the plan must make a distribution, but the plan participant is missing.
Let’s hope revenue ruling 2019-19 is just the first in a series of much-needed guidance from the IRS and the Department of Labor about how 401(k) plan administrators should handle the increasingly common administrative issues related to uncashed checks and missing plan participants.
There are many situations in which a 401(k) plan must make a distribution to a plan participant. For example, plans must distribute small benefit cash outs (e.g., account balances that are $1,000 or less) or required minimum distributions to plan participants who reach age 70 and a half. This may come as a surprise, but plan participants fail to actually cash these checks with some regularity.
In the ruling, the IRS confirmed that 401(k) plan administrators should withhold taxes on a 401(k) plan distribution and report the distribution on a Form 1099-R in the year the check is distributed to the participant, even if the participant does not cash the check until a later year.
Similarly, the participant needs to include the plan distribution as taxable income in the year in which the plan makes the distribution even if the participant fails to cash the check until a later year. While this guidance is not surprising, it does provide clarity to 401(k) plan administrators as to how they must withhold and report normal course and required plan distributions. In particular, 401(k) plan administrators should not reverse the tax withholding or reporting of the distribution when the participant receives the distribution and simply does not cash the check until a later year.
Unfortunately, this new IRS guidance has limited use because the ruling uses an example that specifically concedes that the plan participant actually received the plan distribution check, but simply failed to cash it. What should 401(k) plan administrators do when the participant may not have received the distribution check at all (e.g., a check is returned for an invalid address) or the plan itself does not have current contact information for the participant?
Retirement plan administrators have an ERISA fiduciary obligation to implement a diligent and prudent process to find missing plan participants and to take additional steps to make sure participants actually receive plan distributions. Uncashed 401(k) plan distribution checks are still retirement plan assets which means the 401(k) plan administrator is still subject to ERISA fiduciary standards of care, prudence and diligence related to those amounts. As a result, the IRS and DOL have increased their focus on uncashed checks and missing participants in retirement plan audits.
Plan administrators would be well-served by establishing and implementing a consistent process to stay on top of any missing plan participants or uncashed checks and taking steps to locate those participants and properly address uncashed checks. Plan administrators should also carefully document the steps that they take in this regard. The IRS and DOL have currently provided limited guidance on the steps a 401(k) plan administrator can take to locate missing participants, but more guidance is needed — let’s hope revenue ruling 2019-19 is just the beginning.
This article originally appeared on the Foley & Lardner website. The information in this legal alert is for educational purposes only and should not be taken as specific legal advice.
SOURCE: Dreyfus Bardunias, K. (6 September 2019) "A 401(k) plan administrators’ guide to the recent IRS revenue ruling" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/401k-administrators-guide-to-the-irs-revenue-ruling-2019-19
4 Tips for Managing Organizational Change
Only 26 percent of transformation initiatives succeed, according to a McKinsey study. One thing most successful transformation efforts have in common is that change is driven through empowerment, not mandated from the top. Continue reading this blog post from Harvard Business Review for four tips on managing organizational change.
Launching major transformation efforts is a common way that business leaders try to get a leg up on the competition, or just keep their heads above water. But too many of these efforts fail. Change is difficult, and many people not only resist it but seek to undermine it. Unsurprisingly, then, a McKinsey study found that merely 26% of transformation initiatives succeed. Most successful transformations have one thing in common: Change is driven through empowerment, not mandated from the top.
In my research of transformative political revolutions, social movements, and organizational change, successful efforts not only identify resistance from the start but also make plans to overcome those who oppose the transformation. And it’s done not with bribes, coercion, shaming, or cajoling, but by enabling others within their organizations to drive change themselves. Here’s how they do it.
Start with a small group. Typically, leaders launch transformation efforts with a large kickoff. It makes sense: They want to build momentum early by communicating objectives clearly. This can be effective if a ready consensus already exists around the initiative. Yet if the desired change is truly transformational, it is likely to encounter fierce opposition; inertia can be a powerful force, even more powerful than hope or fear. So by starting with a large communication campaign, essentially presenting the initiative as a fait accompli, you are very likely to harden the opposition of those who are skeptical of the change.
Most successful transformations begin with small groups that are loosely connected but united by a shared purpose. They’re made of people who are already enthusiastic about the initiative but are willing to test assumptions and, later, to recruit their peers. Leaders can give voice to that shared purpose and help those small groups connect, but the convincing has to be done on the ground. Unless people feel that they own the effort, it’s not likely to go very far. For example, when Wyeth Pharmaceuticals set out to drive a major transformation to adopt lean manufacturing practices, it began with just a few groups at a few factories. The effort soon spread to thousands of employees across more than a dozen sites and cut costs by 25%.
Identify a keystone change. Every change effort begins with some kind of grievance: Costs need to be cut, customers better served, or employees more engaged, for example. Wise managers transform that grievance into a “vision for tomorrow” that will not only address the grievance but also move the organization forward and create a better future. This vision, however, is rarely achievable all at once. Most significant problems have interconnected root causes, so trying to achieve an ambitious vision all at once is more likely to devolve into a five-year march to failure than it is to achieve results. That’s why it’s crucial to start with a keystone change, which represents a clear and tangible goal, involves multiple stakeholders, and paves the way for bigger changes down the road.
That gap between aspiration and practical reality was the challenge that Barry Libenson encountered when he arrived at Experian as CIO in 2015. In his conversations with customers, it became clear that what they most wanted from his company was access to real-time data. Yet to deliver that, he would have to move from the company’s traditional infrastructure to the cloud, an initiative that raised serious concerns about security and reliability. He began by developing methods for accessing real-time data for internal use, rather than going straight to customer-facing features. That required his team to engage many of the same stakeholders and develop many of the same processes that a full shift to the cloud would have required and allowed him to show some early results.
“Once we developed some internal APIs, people could see that there was vast potential, and we gained some momentum,” Libenson told me. Experian not only successfully moved to the cloud but also launched its Ascend platform based on the new infrastructure, which is now the fastest-growing part of its business.
Network the movement. All too often we associate any large-scale change with a single charismatic leader. The U.S. civil rights and Indian independence movements will always be associated with Martin Luther King Jr. and Mohandas Gandhi, respectively. In much the same way, turnarounds at major companies like IBM and Alcoa are credited to their CEOs at the time, Lou Gerstner and Paul O’Neill.
The truth is more complicated. King, for example, was just one of the “big six” of U.S. civil rights leaders. Gerstner gained allies by refocusing the company around customers. O’Neill won over labor unions by making a serious commitment to workplace safety. These examples show why, in his book Leaders: Myth and Reality, General Stanley McChrystal defines effective leadership as “a complex system of relationships between leaders and followers, in a particular context, that provides meaning to its members.”
Every large-scale change requires both leadership at the top and the widening and deepening of connections through wooing — not coercing — an ecosystem of stakeholders.
Consider the case of Talia Milgrom-Elcott, cofounder of 100Kin10. When she set out to start a movement to recruit and retain 100,000 STEM teachers in 10 years, she knew there was no shortage of capable groups working to improve education. In fact, she had worked with many people who were building myriad approaches to the issue. But they had never met one another. And so she created a platform for collaboration that brings together nearly 300 partner organizations through conferences, working groups, and networking. Today 100Kin10 is ahead of schedule to meet its goal.
Surviving victory. Often the most dangerous part of any transformation effort is when the initial goals have been met. That’s why successful transformation leaders focus not only on immediate goals but also on the process of change itself. If Wyeth had stopped at a 25% cost reduction, it would have soon found itself in trouble again. But because its employees embraced the lean manufacturing methods, the company was able to keep moving forward. In much the same way, if Experian had been satisfied with merely shifting to a new technology infrastructure, little would have been gained.
In some cases, the benefits of a successful transformation can last for decades. Remembering Gerstner’s IBM turnaround in the 1990s, one of his top lieutenants, Irving Wladawsky-Berger, told me, “Because the transformation was about values first and technology second, we were able to continue to embrace those values as the technology and marketplace continued to evolve.” After a near-death experience, the company remains profitable today.
SOURCE: Satell, G. (27 August 19)"4 Tips for Managing Organizational Change" (Web Blog Post). Retrieved from https://hbr.org/2019/08/4-tips-for-managing-organizational-change
15 states where $1 million in retirement savings will last the longest
How much do you have saved for retirement? According to GOBankingRates data, employees who have $1 million in retirement savings can make it last for more than 20 years in Mississippi, Arkansas, Oklahoma and Missouri. In this article, Paola Peralta writes on the importance of understanding what better retirement choices can do for your future.
Employees with $1 million in retirement savings can make it stretch for more than 20 years in Mississippi, Arkansas, Oklahoma and Missouri, according to GOBankingRates data in an article from Business Insider. Retirees in New Mexico, Tennessee, Michigan and Kansas can also live on a similar amount of savings, data shows. Retirees with $1 million can expect their savings to last in average span of 19 years, GOBankingRates estimates.
Less choice could mean better retirement outcomes
The amount of income that seniors can replace in retirement is a good measure to determine whether there is a looming retirement crisis in the U.S., according to retirement expert Mark Miller in this article from Morningstar. However, it is hard to make generalizations, he explains. “I think it varies tremendously, depending which demographic group you’re looking at, you can do it generationally or otherwise,” Miller says.
Retirement requires a shift in thinking
As retirees needs change, they should be ready to adjust their mindset and modify their investment strategies, an expert in Kiplinger writes. Retirees should focus more on preservation and distribution after the accumulation phase, the expert writes. “In retirement, it’s important to think of your savings as income rather than a lump sum. It’s not all about achieving maximum return on investment anymore," the expert says. "It’s about how you can get the maximum return from your portfolio and into your pocket."
Employees nearing retirement? 12 features to look for in their next home
Seniors who intend to move to a new home in retirement should consider a property that offers low yard maintenance, a single-story open floor plan and easy access to loved ones and essential amenities, according to a Forbes article. They should ensure that the new house is cheap to maintain and won’t trigger a hefty tax bill, says one expert. “If those costs are low, it can be a great investment.”
SOURCE: Peralta, P. (15 August, 2019) "15 states where $1M in retirement savings lasts the longest"(Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/states-where-retirement-savings-will-last-the-longest
The case for expanding wellness beyond the physical
Can addressing mental health, financial wellness and substance abuse in the workplace help employees feel fulfilled both personally and professionally? Newly released data shows that employees who have access to wellness programs that address most or all of the five aspects of well-being are more likely to say their job performance is excellent. Read this blog post to learn more about expanding wellness programs.
Client's wellness programs that only focus on physical fitness may need to rethink their approach.
By expanding wellness offerings to include programs that support workers’ mental and financial wellness, employer clients can increase the overall wellbeing of their workforce. Newly released data from Optum and the National Business Group on Health shows that employees who are offered programs that address most or all of the five aspects of wellbeing — physical, mental, financial, social and community — are significantly more likely to say their job performance is excellent, have a positive impression of their employer, and recommend their company as a place to work.
Over the last decade, workplace wellness initiatives have evolved beyond health risk assessments, physical fitness and nutrition programs. Many programs now include resources to address mental health, financial wellness and substance abuse.
“[Employers] must commit to looking beyond clinical health outcomes,” says Chuck Gillespie, CEO of the National Wellness Institute, speaking at a webcast from the International Foundation of Employee Benefit Plans. “You want employees to be fulfilled both personally and professionally.”
Even though some clients address financial, social and community health, most still focus on physical and mental health.
However, there are benefit trends that address wellness beyond physical fitness. The emergence of financial wellness benefits — such as early pay access, student loan assistance and retirement saving plans — may help employees feel less stressed and more financially secure, which has shown to improve overall health.
But having a good wellness program in place isn’t enough — employers also have to make sure that the offerings are inclusive and personalized, and that the programs have successful participation and engagement rates.
“These programs need to be adapted to who you are,” Gillespie says. “Customization has to be a key factor of what you’re looking at, because everybody is not going to fit inside your box.”
Effective wellness programs use both health and wellness data points and best practices, while keeping an eye on developing trends. Multi-dimensional wellness — looking at aspects such as social and community — can help companies understand the needs of their employees better.
“Employers need to better recognize personal choices, and if the employees are in an environment where they are functioning optimally,” Gillespie says. “Smokers hang out with smokers; the cultural foods that you eat with family may not be nutritious; is there social isolation; do you contribute to your community. [Most benefits] are work-oriented, but for most people, their life is their home life. It’s important to look at the degrees of which you feel positive and enthusiastic about your work and life.”
SOURCE: Nedlund, E. (15 August 2019) "The case for expanding wellness beyond the physical" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/the-case-for-expanding-wellness-beyond-the-physical
Turnover Contagion: Are Your Employees Vulnerable?
How are you engaging employees? With employee retention top-of-mind for organizations wanting to stay competitive in today's market, employers need to find ways to ensure employees are engaged and happy at work. Continue reading this blog post from SHRM to learn more.
Employee retention is top-of-mind for any organization looking to stay competitive in today’s market. Despite swaths of technological advances, in our knowledge-based, global economy an organization’s key assets are still its employees. Considering this, substantial amounts of research have been published about potential predictors and causes of employee turnover. Most of this research can be classified into two categories: individual-level explanations (e.g., job satisfaction, person-job fit, etc.) or external and organizational-level explanations (e.g., unemployment rates, job demand, etc.). However, only having these two types of explanations ignores team-level and the inherent social aspects of turnover. Specifically, do the behaviors and attitudes of coworker's influence employee’s intentions to quit their jobs?
Quitting is infectious.
People regularly “catch” the feelings of those they work with, particularly in group settings. We’ve all been around someone at work whose sour mood set the tone for the day; their negative emotions dampened the mood of everyone else around them. Employee mood isn’t all that is affected. Surprisingly, the emotions of others influence judgment and business decisions – and this all typically happens without anyone realizing.
In a study on the spread of emotions, groups were created to judge how to best allocate funds in hiring decisions. A confederate (actor) was planted in each group and instructed to display one of four emotions: cheerful enthusiasm, serene warmth, hostile irritability, or depressed sluggishness. Not only did the emotions of the confederates spread to each member of the group but each group’s resulting judgments and behaviors were affected. In groups with a pleasant confederate, members displayed more cooperation, less conflict, and allocated funds more equitably than in groups with unpleasant confederate emotions.
In a related study, researchers looked into the contagion of social contexts on job behaviors. As it turns out, evidence suggests an employee’s decisions to voluntarily leave an organization is influenced by the attitudes and behaviors of their coworkers. They found evidence suggesting job embeddedness (how well employees feel they fit in with their job and the community) and job search behaviors of coworkers predict individual voluntary turnover. An employee’s job embeddedness is the relative strength of their organizational network; weaker bonds or links are easier to break. That is, if a coworker is low on organizational connection (e.g., fewer and weaker relationships with other organizational members) or engages in noticeable job-seeking behaviors (e.g., talking about an application or interview, expressing a desire to leave, quitting, etc.) their colleagues are more likely to choose to exit the organization. As can be imagined, this relationship is amplified when a coworker has both low job embeddedness and visible job-searching behaviors.
People leave organizations all the time. There are several reasons why employees decide to leave organizations - whether it be for personal (relocation of family member), professional (more pay, promotion, career change), or organizational (job or organization redesign). In fact, healthy businesses want some amount of turnover. However, in the case of turnover contagion, your employees are leaving simply because their colleagues are leaving. When a group of employees leave an organization in rapid cycle, it may be due to the influence of their immediate peer group and this should be cause for concern as turnover contagion is likely occurring.
The interplay of social contexts within an organization along with individual and organizational-level predictors adds more to our understanding of the complexity of employee turnover decisions. This is just one piece of the pie – and an important one. Understandably, more research needs to be conducted until just how this phenomenon works is understood, however, based on the evidence, organizations and leaders shouldn’t wait to act.
For one, it’s a tight labor market and has been for some time now. Overall, many employees are looking and leaving. There has been a cultural shift among workers where they feel increasingly less loyalty than before and are even more likely to job hop. To add to this, unemployment is at an all-time low and job growth is climbing. Meaning there are more open jobs than there are workers to fill them. It’s an applicant’s market. These factors, coupled with the sheer cost of replacing skilled employees – speculated to be a whopping 1.5 to 2 times an employee’s salary – should give pause to leaders when they suspect employees have caught the turnover bug.
On the bright side, turnover contagion can be minimized, and companies stand to reap plenty of rewards through emotional contagion. Just like negative emotions create a spiral of negativity, so too can emotions with a more positive valence. For example, leaders can use the infectious qualities of emotions to spread feelings of happiness by expressing gratitude or complementing someone. In addition, increasing job embeddedness and strengthen the bonds your employees have by building more connection with their team, leaders, and other departments can go a long way to reducing turnover.
SOURCE: Ford, A. (13 August, 2019)"Turnover Contagion: Are Your Employees Vulnerable?"(Web Blog Post). Retrieved from https://blog.shrm.org/blog/turnover-contagion-are-your-employees-vulnerable
Older Workers Are a Valuable Talent Pool
Currently, Americans 55 and older make up less than a quarter of the nation's labor force, according to AARP. While many HR leaders have been focused on finding out how to meet the different expectations and needs of Millennials, they also need to be aware of the bigger demographic challenge ahead - the role of people over 55. Read this blog post to learn more.
Over the last decade, most HR leaders have been obsessed by the role of millennials at work and figuring out how to meet the different expectations and needs of these young workers.
Certainly, this has been important work. But, leaders need to be aware of a much bigger demographic challenge ahead: the role of people over the age of 55.
The U.S. Bureau of Labor Statistics projects that in the next 10 years, the fastest-growing segments of the workforce will be for employees over 65. According to AARP, Americans 55 and older make up slightly less than a quarter of the nation’s labor force, but they filled almost half (49 percent) of the 2.9 million jobs gained in 2018—the biggest share of any age group.
This trend will continue. We are living longer and having fewer children. The fertility rates in the U.S., U.K., Germany, Japan, and almost every other developed country are below replacement. As a result, populations—and our workforces—are going to get older.
Obviously, this has an impact on public policy, immigration, and healthcare investments. But the more interesting aspect for those of us in HR is the huge impact this will have on work.
Attitudes About Age
How do most employers feel about older people? They aren’t that thrilled to have them around. While older employees may be wiser and more reliable, they usually make more money than younger workers. Many employers believe older workers can’t keep up with today’s always-on digital workplace.
A few years ago, we asked employers whether age was a competitive advantage or competitive disadvantage in their company. Almost 60 percent of respondents said that age was a disadvantage. In other words, when a young employee competes with an older employee for a job, the young person wins.
This discriminatory perception was summed up perfectly by Mark Zuckerberg in 2007 when he said in an interview, “Younger people are just smarter.”
Forced Transitions
I’ve seen this in my own personal life. Many of my friends from college (we’re all in our early 60s) are starting to think about retiring, primarily because they’ve been forced out of their companies. Most of us will live well into our 80s, 90s, or longer, and as we age, work becomes one of the most gratifying things we do. But employers just don’t see it this way.
According to a recent analysis by the Urban Institute and ProPublica, more than half of workers over 50 lose longtime jobs before they are ready to retire. Of those, 9 out of 10 never recover their previous earning power. Why? Employers simply do not want them back.
Age Discrimination
Companies are now being sued for age discrimination. Recruiters have been caught saying things like “you’re too old for this job” or “we only hire people with less than seven years of experience.” Even Facebook has been forced to remove age as a criterion for job placements in its online advertisements.
The above are examples of explicit discrimination. However, in most companies, age discrimination is much more subtle. Older people have higher salaries, so they are just passed over for many positions.
New Ideas for Older Workers
But change is ahead. Not only does age discrimination fly in the face of most diversity and inclusion programs, but the reality is that employers really need older workers because of record unemployment rates and extreme talent shortages.
“Re-careering” programs—in which employers invite retirees back to work, give them training and new skills, and let them work part-time—are cropping up in companies such as Boeing, Bank of America, and Apple. I encourage all employers to invest this way.
Business leaders also need to keep in mind that baby boomers are the biggest buying population in the world and has as much disposable income as the rest of the population combined. These consumers want to do business with organizations that respect older individuals and don’t view age as a negative.
Think about your company’s attitudes about age. Older workers are often more stable, they understand how to work in teams, and they are likely to be more loyal over time. Generational diversity in workforces is also reflective of good corporate citizenship.
Now is the time for HR leaders to work to actively eliminate age discrimination in their workforces and view generational diversity as a valuable goal.
SOURCE: Bersin, J. ( 25 July 2019) "Older Workers Are a Valuable Talent Pool" (Web Blog Post). Retrieved from https://blog.hrps.org/blogpost/Older-Workers-Are-a-Valuable-Talent-Pool
Tracking Employee Life Cycle
The HR landscape is constantly changing. With each new generation that enters the workforce, expectations change. Read this blog post from SHRM to learn more about tracking the employee life cycle.
We who study Employee Engagement are consistently looking for trends in hiring and the direct effect on retention. The Human Resource landscape is slippery, no other profession is tasked with such a diverse cycle of management skills. The ability to find great talent, train, engage and promote are an unenviable set of tasks. Recruiters mirror salespeople, Total Rewards professionals have to have an acumen for numbers and the disparate technologies that represent the progression from hiring through promotion can make one's head spin.
So, we stare down the inevitable:
How do we create a synchronized strategy from recruitment to retirement.... ????
Let's start with the job market....
As a new generation of talent enter the workforce are expectations changing?
Are those escalated in age better equipped with irreplaceable experience?
Is a recession coming?
Do elite talents have any interest in job-hopping?
Those who are great at what they do are probably not interested in switching jobs and there are others who simply do not have the proper qualifications. So, staffing professionals are tasked with finding people who are qualified, able to engage and humble in their entry-level financial expectations.
Prospective employees have a few simple expectations:
- A product/service they believe in
- Leadership that is visionary yet receptive to change
- A culture of transparency
- A manager they enjoy serving
Sounds simple enough but the ability to pull together these traits under a common mission is difficult. Companies are often great at producing quality products but lacking in employee development. Again, our staffers are called upon to sell the good qualities of the company while side-stepping what isn't working.
Sustaining Engagement....
Getting them in the door is one thing. Delivering on promises is another.
Once employees are trained, they need to develop the confidence to acclimate to the culture. Our extended HR team has to sustain the attraction of the hiring process with technology that is accessible and intuitive. HR is then called upon to make sure there is a vessel for strong manager/employee communication while keeping leadership abreast of the action in the trenches.
Take inventory:
- Does training scale to specific functional traits while enhancing soft skills?
- Is your Human Capital Management technology integrated and engaging?
- If employees and managers aren't on the same page, how will you know?
- Does your CEO recognize general employee goals?
Train, Reward, Challenge and Eliminate Silos!
Seeing departures before they happen.....
If exit interviews are part of your engagement strategy, you are a step behind. The popular counter is to have HR integrate "stay interviews". If you need to administer a survey for employees to validate your existence, your workplace relationships might be fractured.
Managers should have an accountability plan for their employees that is more parts celebration of achievement than calling out deficiencies.
Recognize in public, discipline is private.
If in every day you leave people with a firm understanding of what is working and where they need development, there is no guesswork. People know when they haven't performed to their fullest potential, calling them out twice a year doesn't work.
Ask yourself: do our hiring enticements continue through our day-to-day engagement proposition?
We all just want to represent something we believe in among people we respect and an ever-evolving challenge cycle complete with rewards at every step of progression.
Originally published on Dave's Weekly Thought blog.
SOURCE: Kovacovich, D. (6 August 2019) "Tracking Employee Life Cycle" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/tracking-employee-lifecycle
Deepfakes in HR
Blame Forrest Gump. The 1994 movie used new technology to edit Gump's character into scenes to make it seem like he talked with John F. Kennedy or sat next to John Lennon — an editing magician's trick that won the film accolades.
That technology has evolved into what is now referred to as "deepfake" technology: a mix of AI and machine learning that allows users to alter videos, audios, and photos in powerful ways.
One deepfake example: A widely-shared video of Speaker of the House Nancy Pelosi that was doctored to slow down the speed of her speech, creating the impression Pelosi was impaired. Deepfakes can make it seem that someone is saying something or doing something they may never have — and that can create a new kind of security woe for employers of all types.
Just because deepfakes haven't showed up at your company doesn't mean they'll stay away forever, Randy Barr, chief information security officer for Topia, a global mobility management software company, told HR Dive; "We're going to start to see a lot more than this as soon as technology is readily available for people to use and try."
What can HR do now to ensure employees are safe?
It's all fun and photoshop until someone gets hurt
Deepfake technology can have positive purposes, such as in the creation of digital voices for those who have lost the ability to speak, or the David Beckham video that shows him explaining how people can protect themselves from malaria, using deepfake tech to look like he's speaking in nine different languages.
But unlike the altered content from Forrest Gump and Instagram filters, the audience isn't supposed to know that the deepfakes are manipulated pieces.
On top of that, the technology is often used explicitly to create trouble, Niraj Swami, CEO of SCAD AI, an AI consultancy, told HR Dive. "It stems from leveraging controversial material…offensive content or offensive perspectives," he said. When this material pops up in social media, it creates media confusion, he said, and many viewers react emotionally to the false information.
Some deepfake videos can be identified relatively easily, Barr said. "One of the simple ways of detecting it is if you look at the video, see how often that individual blinks, because [with] the current AI technology and deepfake, it's hard to impose the face over a body if the eyes are closed," he said. Other tips are to look for a mismatch in skin tone, and placement of the eyebrows and chin, he added.
Just as deepfake technology is becoming more sophisticated, so is the technology used to identify altered media, with improvements on both sides expected to continue.
How deepfakes can harm employers
Although most deepfakes thus far have targeted politicians and celebrities, the technology has been seen in the work environment — and it may be used with increasing frequency, experts said.
Imagine a CEO placing an urgent call to a senior financial officer requesting an emergency money transfer — except the CEO's voice was deepfaked by criminals, as Axios reported happening to a number of companies already. Deepfakes could be used to attack a company, Barr said; "[It] could be the evolution of how ransomware takes place."
Remote employees could use deepfake tech to disguise their identities and hand off work to subcontractors, Swami said. This could be concerning if the subcontractor is not supposed to be offshore or if the initial employee had a security clearance, but the subcontractor does not, he said.
For HR leaders, deepfakes could lead to tricky situations, Forman said. What happens if an employee finds an altered photo or video of them on social media that uses their company ID or picture? What obligation does the organization have to investigate? "It's becoming more difficult. You have workplace morale issues, compliance issues with your policy and procedures that all jump up because of deepfakes," he said.
Guarding against deepfakes
HR leaders are used to discerning fake information, from exaggerations on a resume to doctored emails, but as technology improves, it becomes more challenging to anticipate potential issues. While HR is not expected to analyze media for alterations, leaders can take steps to protect employees and the company from being manipulated by deepfakes.
Review company technology policies, said Forman. New technologies up the ante for the workplace and the employer and employee relationships because of the increased risk for misconduct, he said. An employer may want to take an existing policy regarding anti-harassment, anti-retaliation, and anti-discrimination, and make sure the guidelines address the new technology, he added.
Companies should decide how they would respond if a deepfake incident occurred, Forman advised. Although there may be no one right or wrong answer, being prepared to react to the threat is necessary.
"The biggest thing is awareness," Swami said. If employers see an incendiary video, they can't have a knee jerk reaction if it is presented as evidence of wrong-doing, he said. Managers might not be able to believe their eyes, so employers may need to ensure its managers gather more information. "You can't have a single source of truth."
SOURCE: DeLoatch, Pamela. (5 August 2019). "Keeping it real: What HR leaders need to know about deepfakes" (Web Blog Post). Retrieved from: https://www.hrdive.com/news/keeping-it-real-what-hr-leaders-need-to-know-about-deepfakes/559475/
Paid Leave
Benefits can be one of the sure ways of attracting a new hire and paid leave is one of the most coveted benefits. However, this benefit can be a tricky one to navigate. Some employers are getting themselves into trouble in the process, facing accusations of gender discrimination or improper use of leave.
Here are four potential pitfalls of paid leave, and how employers can avoid them.
1. Be careful what you call “maternity leave.”
Employers have long been granting leave for new moms in the form of disability coverage. In fact, the top cause of short term disability is pregnancy. Disability insurance usually grants new moms six to eight weeks of paid leave to recover from childbirth.
Because this coverage applies to the medical condition or recovering from childbirth, it shouldn’t be lumped in with bonding leave.
Guidance from the Equal Employment Opportunity Commission says leave granted for new moms for bonding must also be extended to new dads, so separating disability leave from bonding leave is crucial to avoiding gender discrimination.
2. Don’t make gender assumptions.
The amount of bonding time for new parents after birth, adoption or fostering must be granted equally for men and women. Companies that don’t provide the same amount of paid leave for men and women may find themselves in a discrimination lawsuit.
It’s not just the time away from work that matters, but also the return-to-work support provided. If new moms are granted temporary or modified work schedules to ease the transition back to work, new dads must also have access to this.
Some companies may choose to differentiate the amount of leave and return-to-work support for primary or secondary caregivers. That’s compliant as long as assumptions aren’t made on which gender is the primary or secondary caregiver.
The best way to avoid potential gender discrimination pitfalls is to keep all parental bonding and related return-to-work policies gender-neutral.
3. Avoid assuming the length of disability.
Be careful about assuming the length of time a new mom is disabled, or recovering medically, after birth. Typical coverage policies allow six to eight weeks of recovery for a normal pregnancy, so assuming a new mom may be out for 10 weeks might be overestimating the medical recovery time, and under-representing the bonding time, which must be gender-neutral.
4. Keep up with federal, state and local laws.
Mandated leave laws are ever-evolving, so employers should consistently cross-check their policies with state and local laws. For instance, do local paid leave laws to treat adoption the same as birth? Are multistate employers compliant? What if an employee lives in one state but works in another: Which state’s leave policies take precedence?
Partnering with a paid leave service provider can mitigate the risk of improperly administering leave. Paid leave experts can help answer questions, review guidelines and provide information regarding job-protecting medical or family leave.
They can also help flag potential pitfalls, ensuring leave requests from all areas of your company are managed uniformly and in accordance with state and federal laws, including the EEOC.
SOURCE: Bennett, Angel. (29 July 2019) “4 pitfalls of paid leave and how clients can avoid them” (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/list/pitfalls-of-paid-family-leave-and-how-to-avoid-them